Today Sector News – 26.11.2018
* AUTOMOBILE: The Delhi Cabinet has approved a proposal to procure 1,000 low-floor air-conditioned buses under the cluster scheme of the state government. The buses will be deployed on city roads from July. Nissan's board voted unanimously to remove Carlos Ghosn from his post, it said after a meeting.
- The government has increased the outlay by 1 bln rupees to 8.95 bln rupees for the first phase of the
FAME India scheme to promote mass adoption of electric vehicles.
* AVIATION: The government, worried over its past failures to implement key decisions in aviation sector such as privatisation of Air India, has formed an empowered group of secretaries to ensure the privatisation of six airports doesn't fall through cracks.
- The Airports Authority of India has served a termination clause to Air Odisha for failing to operate
70% of its scheduled flights over the last three months, as per the Biju Patnaik International Airport
(Bhubaneswar) Director Suresh Chandra Hota. The government plans to complete the sale of Air India ground-handling subsidiary AIATSL by March.
* BANKING: The Centre has empowered chief executives of public sector banks to request a look-out circular against wilful defaulters of loans in an effort to prevent them from fleeing the country, senior finance ministry officials said on Thursday. With the issue of RBI's reserves to be decided by an expert committee, the government now plans to push for a discussion on boosting overall liquidity as well as to relook RBI's governance structures at the next board meeting on Dec 14.
- The government is likely to raise the issue of the relaxation of the prompt corrective action
framework for stressed banks with RBI again if the subcommittee tasked to look into the issue does not relax or give guidance before the next RBI board meeting. The government is set to introduce a quick corporate rescue option, which will be finalised mostly in boardrooms than in courts, as it seeks to avoid prolonged legal battles over the resolution of bankrupt companies.
* CORPORATE: Corporates, non-banking finance companies and other businesses may soon have to disclose key information for issuing commercial papers to mutual funds.
* FINANCE: IL&FS Financial Services has defaulted on payments towards short-term deposits, including interest, of 2.2 bln rupees. Finance Minister Arun Jaitley will follow convention and present an interim budget for 2019-20 (Apr-Mar) in February. The Budget is expected to highlight the government's achievements and lay out its vision for the next five years, a senior official said. India has signed a $300-mln loan agreement with Asian Development Bank to support lending by India Infrastructure Finance Co, the government said in a release.
* POWER: Private power companies said the recommendations of the cabinet secretary-led panel on stressed thermal assets will help the projects, but the government should have specified timelines to ensure expeditious implementation.
* STEEL: Standard Chartered Bank, financial creditor of Essar Steel, has filed an application before the bankruptcy court alleging that the resolution professional and Essar's committee of creditors approved a resolution plan that does not comply with the Insolvency and Bankruptcy Code.
* TELECOMMUNICATION: The department of telecommunications is considering a reverse auction model to ensure that the government is able to raise timely money from sale of bandwidth for meeting fiscal needs without further adding to the financial stress of mobile phone operators. ITI will have an opportunity to participate in two large tenders of Bharat Sanchar Nigam by March-end, as part of procurement quota approved by the Cabinet recently.
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- The government has increased the outlay by 1 bln rupees to 8.95 bln rupees for the first phase of the
FAME India scheme to promote mass adoption of electric vehicles.
* AVIATION: The government, worried over its past failures to implement key decisions in aviation sector such as privatisation of Air India, has formed an empowered group of secretaries to ensure the privatisation of six airports doesn't fall through cracks.
- The Airports Authority of India has served a termination clause to Air Odisha for failing to operate
70% of its scheduled flights over the last three months, as per the Biju Patnaik International Airport
(Bhubaneswar) Director Suresh Chandra Hota. The government plans to complete the sale of Air India ground-handling subsidiary AIATSL by March.
* BANKING: The Centre has empowered chief executives of public sector banks to request a look-out circular against wilful defaulters of loans in an effort to prevent them from fleeing the country, senior finance ministry officials said on Thursday. With the issue of RBI's reserves to be decided by an expert committee, the government now plans to push for a discussion on boosting overall liquidity as well as to relook RBI's governance structures at the next board meeting on Dec 14.
- The government is likely to raise the issue of the relaxation of the prompt corrective action
framework for stressed banks with RBI again if the subcommittee tasked to look into the issue does not relax or give guidance before the next RBI board meeting. The government is set to introduce a quick corporate rescue option, which will be finalised mostly in boardrooms than in courts, as it seeks to avoid prolonged legal battles over the resolution of bankrupt companies.
* CORPORATE: Corporates, non-banking finance companies and other businesses may soon have to disclose key information for issuing commercial papers to mutual funds.
* FINANCE: IL&FS Financial Services has defaulted on payments towards short-term deposits, including interest, of 2.2 bln rupees. Finance Minister Arun Jaitley will follow convention and present an interim budget for 2019-20 (Apr-Mar) in February. The Budget is expected to highlight the government's achievements and lay out its vision for the next five years, a senior official said. India has signed a $300-mln loan agreement with Asian Development Bank to support lending by India Infrastructure Finance Co, the government said in a release.
* POWER: Private power companies said the recommendations of the cabinet secretary-led panel on stressed thermal assets will help the projects, but the government should have specified timelines to ensure expeditious implementation.
* STEEL: Standard Chartered Bank, financial creditor of Essar Steel, has filed an application before the bankruptcy court alleging that the resolution professional and Essar's committee of creditors approved a resolution plan that does not comply with the Insolvency and Bankruptcy Code.
* TELECOMMUNICATION: The department of telecommunications is considering a reverse auction model to ensure that the government is able to raise timely money from sale of bandwidth for meeting fiscal needs without further adding to the financial stress of mobile phone operators. ITI will have an opportunity to participate in two large tenders of Bharat Sanchar Nigam by March-end, as part of procurement quota approved by the Cabinet recently.
